Finance Forum
18 September 2013
18 September 2013
2
Welcome and Overview
David Sturgiss
18 September 2013
3
The 2014 Budget
Melissa Abberton
Main Factors Impacting the 2014 Budget
• The MYEFO announcements in November 2012
- $11 million
• The 2% Efficiency Dividend announced in April 2013
- $8 million
• Removal of Facilitation Funding - $4 million
• 2% Pay rise - $15.3 million
• Deferral of savings to be realised from service process
improvements from 2012 Admin Reviews - $7 million
18 September 2013
5
Main Factors Impacting the 2014 Budget
• “Solving our Budget Challenges” program introduced
to compensate for lost revenues
• $21.450 million in savings need to be found
• Of these savings $20.250 million to be found from
the recurrent budget
• This will still deliver a University deficit of $32.1
million in 2014 before we achieve a small surplus of
$6.5 million in 2015
18 September 2013
6
How to Allocate the $20.250 million?
• The Senior Management Group (SMG) agreed to
use the Transparent Budget Model as the
mechanism to deliver the savings
• At the SMG retreat a number of modelling options
were assessed to determine how the savings should
be allocated
• This has lead to some changes to the 2013 Budget
Model to be adopted for implementation in 2014
18 September 2013
7
SO WHAT IS DIFFERENT IN 2014?
• For Colleges this will reduce all Revenue
A Budget Solutions
Streams so applied to:
Repositioning Adjustment
NIF, HECS/CGS, all RBG schemes,
will reduce Allocations
DTF & ISF
DTF Allocation Rate will
Change
HECS/CGS allocation rates
across Colleges will be
Harmonised
Apply Overhead Charges to
HDR Fee Waived Revenues
18 September 2013
• Academic & Administrative support
share of savings applied in proportion to
their share of total support area
Operating Grant allocations
• Equalise the DTF and HECS/CGS
allocation rates to more equitably
distribute domestic student overheads
• All allocation rates will be the same
• Reclassify the Medicine and Law
subsidies as “Off the Top Deductions”
• Apply overheads to HDR Fee Waiver
load in the same way as overhead is
applied to other students with waivers
8
Distribution of the Repositioning Adjustment
Revenue
Stream
%
$
NIF
32.9%
6,671,652
CGS/HECS
22.0%
4,445,164
RIBG
2.4%
491,158
JRE
3.3%
677,775
RTS
6.5%
1,322,794
SRE
2.0%
406,838
DTF
7.0%
1,415,248
ISF
23.8%
4,819,371
Total
100.0%
20,250,000
18 September 2013
9
Changes to Allocation Rates
Rate
Previous Rate
New Rate
CGS/HECS
60.5%
65.7%
DTF
70.0%
65.7%
Estimated Impact of HDR Fee Waiver Overhead Charge @ 46%
of Commencing Load:
CAP
CASS
CBE
CECS
COL
$45,807
$27,678
$177,394
-
CPMS
$192,339
COMBE
$105,945
18 September 2013
10
What Else……..
• RTS is based on 60% historical and 40% performance based
allocation in line with the transitional formula introduced in 2013
• Student load modelling uses actual fee rates rather than averages
and calculated at AOU
• No fee grandfathering from 2014
• Workers Compensation Levy % likely to rise
• Pay 27 treatment
• Upfront Deduction for utilities and network service charges
18 September 2013
11
Watch this Space……..
• A Capital Development Plan
• Student Load Planning
• TM1 Budget Model
18 September 2013
12
A Capital Development Plan
• Should be part of the annual budget process
• Should be based on a 6 year rolling timeframe
• Integrated with the financial statements and the transparent
allocation budget.
• Capital expenditure levels should, as a minimum match, the overall
level of depreciation expenses.
• Strike an appropriate balance between minor works and major
capital projects.
• Priorities should be evidence based
• Priorities should be determined by the SMG.
18 September 2013
13
Student Load Planning
• PASS has developed new student load
models to project commencing and
continuing load by program
• Will be further developed during 2014 to
more fully integrate with the Budget Model
for projecting tuition fees and allocatiing
HECS/CGS revenues
18 September 2013
14
TM1 Budget Model
• Performance Issues Resolved
• Web based delivery increasing flexibility & portability of
the model
• Salary model enhancements – budget at School Level
• Consistency between data input and report output
• Period 9 Data and 2014 Reporting Structure Loaded
• Go Live week beginning 9 September 2013
18 September 2013
15
2014 Budget Timetable – Key Dates
KEY DATE
DELIVERABLE
3&4
September
Senior Administrators Retreat
9 September TM1 Budget Model available
30
September
Draft Budget Advice Sheets Issued
16
November
TM1 Budget Model Closed for Recurrent and
Trading Ledgers
22
November
University & Allocation Budget Considered by
Finance Committee
Budget Policy & Guidelines Released
End
Final Budget Advice Packs issued incorporating
December
18 September 2013 final Commonwealth Grant outcomes
16
TM1 Budgeting
Trevor Langtry
September 2013
TM1 - Update
18 September 2013
18
Agenda
•
•
•
•
•
•
•
What’s Different
Help & Documentation
What’s Available - Data
Main Menu
Salary Template
Operating Budget
Reports
18 September 2013
19
What’s Different
• Access via a web browser http://fbs.anu.edu.au/accounts/tm1-budgeting
18 September 2013
20
What’s Different – cont.
• Supported browsers:
–
–
–
–
IE 6, 7, 8
Firefox – not supported but appears to work
Chrome – don’t bother
Other – Untested
• Access to client install has been removed
18 September 2013
21
What’s Different – cont.
Web Advantages:
• Easier Deployment
• Auto Calc – don’t have to turn off
• Unable to accidently delete formula’s
• No Confusion re Excel features
• Improved Mobility
• Can run a separate instance of Excel
• Use off campus via a VPN (https://anuvpn.anu.edu.au)
• Easy to export to Excel for quick report
18 September 2013
22
What’s Different – cont.
• Accounts Codes:
– Budgeting is at a subset of the account codes
– Reporting will include all account codes
• Budget Data Entry Screens:
–
–
–
–
No longer contains prior year data
Only used for budget entry
Includes an additional 2 years of projections
Recommend running the Budget Summary report on
second screen
18 September 2013
23
What’s Different – cont.
System Performance
Hopefully
and not
18 September 2013
24
What’s Different – cont.
Salary:
• Comments field added
• Increased max limit for additional staff
• Fixed issues re account code mapping
• Fixed bugs in drop down lists
• Can salary budget for a whole
department/budget unit
18 September 2013
25
Help & Documentation
• Call – Ext 54321and follow the prompts
• Email – fbs-bso@anu.edu.au
• Doco - http://fbs.anu.edu.au/accounts/tm1budgeting
• Request Drop In Session – Call or Email
BSO
18 September 2013
26
Documentation – Available on Web
18 September 2013
27
Documentation Cont..
18 September 2013
28
Documentation Cont..
18 September 2013
29
18 September 2013
30
What’s Available - Data
• Budgeting for 2014
• Forecasting – untested and data not populated
• Original Budget for 2013 – Loaded from P/Soft
Financials
• Actuals for 2013 loaded to P9
• Salary Date – extracted from HR 6th September
• Chart fields and Tree Structure - extracted from
Finance 6th September
18 September 2013
31
Main Menu
18 September 2013
32
Salary Budget Entry Template
18 September 2013
33
Operating Budget Entry
18 September 2013
34
Reports Cont..
18 September 2013
35
Questions?
18 September 2013
36
Annual Financial Statements (AFS)
2013
Rachelle Conry
Financial Reporting at ANU
• Internal (Management) Reporting
• External (Financial) Reporting
• AFS is one of the major External
Reporting Items
• Reported on an Accrual basis
• Includes ACTUAL (cash) & FINANCIAL
(non-cash) entries
18 September 2013
38
AFS Overview
• AFS are produced each year by the ANU
in line with the following regulations:
– Commonwealth Authorities and Companies Act 1997
(CAC Act)
– Australian Accounting Standards
– DIICCSRTE Financial Statement Guidelines for
Australian Higher Education Providers
– Finance Ministers Orders (FMOs)
18 September 2013
39
AFS Overview
• CFO is responsible for delivery inc. signoff by
the Australian National Audit Office (ANAO),
Audit Committee, Finance Committee, Council,
Vice-Chancellor & Chancellor
• The process is managed by F&BS but is a
collaboration with the Colleges and Service
Divisions
• Packs are completed by each Budget Unit &
signed off by the Principle Delegate
18 September 2013
40
AFS 2013 – Process & Packs
• Full update – November Finance Forum
• No major changes for 2013
• 2013 Packs available in October inc.
confirmed timings
• 2012 Packs
– Instructions, schedules, year end journal rules
– http://fbs.anu.edu.au/reporting/financial-reporting/annual-financialstatement-basics
18 September 2013
41
AFS 2013 – Land, Buildings,
Infrastructure, Plant & Equipment (LBIPE)
• Plant & Equipment (P&E) and Inventory
Stocktakes to be returned to F&BS in early
December
• 2013 Revaluation - Land & Rare Library
Material inc. Noel Butlin Archives
• AMS closes 1st week of December
• Work In Progress (WIP)
18 September 2013
42
AFS 2013 – Other Balance Sheet Items
• All Asset & Liability accounts require
reconciliation
• Recs to be submitted electronically
– .xls & .pdf (signed version)
• Comparing ES Financials information to
original source
18 September 2013
43
AFS 2013 – Ledger Maintenance
• Asset Reconciliations
• 7xxx (transfer) & 8xxx (internal sales &
purchase) Reconciliations
• 51xx – Equipment Purchase Review
• 9370 – Proceeds from Sale of Assets
18 September 2013
44
AFS 2013 - Other Items
• Description for vouchers to contain the
year when the goods/services received
• Chasing 2013 Invoices
• 2013 Packs to be submitted electronically
– .xls & .pdf (signed version)
• Delegation needs to be arranged for an
appropriate officer where the principle
delegate is on leave
18 September 2013
45
AFS 2013 – Provisional Timing
• Friday 6 December:
– Plant & Equipment Schedules
– Store Stock Schedules
– Last day for adjustments in Asset
Management System
• Friday 13 December:
– Last day for Vendor Additions
18 September 2013
46
AFS 2013 - Provisional Timing
• Wednesday 18 December:
– Pay 26 to be sent
– Last AP runs for 2013 (draft, chq & TT)
– Last day for AR invoices
– Last day for banking foreign drafts
18 September 2013
47
AFS 2013 - Provisional Timing
• Thursday 19 December:
– Last AP EFT run for 2013
– Last day for direct debits for Halls & Colleges
– Last day for Courier Run
– Pay 26 re-banks
– Last opportunity to run Outstanding
Encumbrances Report for 2013 data
18 September 2013
48
AFS 2013 - Provisional Timing
• Thursday 19 December (cont.):
– Last day for AP Vouchers for 2013
– Last day for entering ACTUALS, FINANCIAL
& STD_BUDGET Journals
– Access to ESP Financials closed at 5pm
18 September 2013
49
AFS 2013 - Provisional Timing
• Friday 20 December:
– All receipting points must be deposit listed by
11am
– Access to One-Stop (Receipting) closed at
11am
18 September 2013
50
AFS 2013 - Provisional Timing
• Thursday 2 January:
– One-Stop reopened after 10am
– ESP Financials reopened after 12 noon
– First day for Vendors & AR Invoices after 12
noon
• Friday 3 January:
– First AP runs (EFT, TT, draft & chq)
18 September 2013
51
AFS 2013 - Provisional Timing
• Friday 10 January:
– Last day for year end journals
– All AP invoices received in 2014 relating to
2013 goods & services should be processed
by 5pm
– All AR invoices relating to 2013 goods &
services should be processed
– All other AFS Pack Schedules due
18 September 2013
52
Assets Update
Samantha Chan
Asset Key Points
• Activities at college level impact on the overall
university’s financial position
–
For e.g. payments coded to 5xxx instead of 3xxx
18 September 2013
54
Asset Key Points
• Asset Management System (AMS) is a
subsidiary ledger of the General Ledger (GL)
AMS
GL
• The two ledgers need to balance at the end of
each period
–
–
Asset reconciliations
Remember that you have to manually add assets to AMS where you have processed a
payment fulfilling the asset capitalisation criteria. Manual for AMS can be found:
http://fbs.anu.edu.au/training --> Asset Management.
18 September 2013
55
AMS vs. GL
• AMS
– Holds asset detail information
» For e.g. serial IDs, colour, location, make of the asset
» Relevant for stocktake
– Posts Financial entries (to the GL)
» Depreciation, addition, disposal entries etc.
GL
AMS
18 September 2013
56
AMS vs. GL
• AMS automatically calculates and posts
depreciation to the GL
• AMS automatically posts entries on asset
transfer
–
Business units do not need to process an actuals journal entry, unless they want this reflected on a cash
basis (i.e. on FMR). Where this is the case, please contact srli@anu.edu.au.
18 September 2013
57
Asset Key Points
• Assets need to be held in the same R department
in AMS as in the GL
» GL side: Voucher payment on R24100,
» AMS side: Asset to be added to R24100 as well
(If not, AMS and GL are not reconciled.)
» Please note that assets cannot be held across multiple departments in GL (3xxx) and AMS.
AMS
SAME
GL
R DEPARTMENT
R 24100
18 September 2013
R 24100
58
Final note on Assets
• Training is available!
– Need a refresher? Got new staff members managing assets?
– Please contact Sam on x58776 or email: samantha.chan@anu.edu.au
• Quick links to asset information on the web:
– http://fbs.anu.edu.au/reporting/assets
– Forms: http://fbs.anu.edu.au/forms/asset-management
– AMS user manual: http://fbs.anu.edu.au/training --> asset management
18 September 2013
59
Procurement
Tim MacPherson
Major Office Machines
(Multifunction Devices, Printers, Scanners and Faxes)
Savings for Period February 2012 to August 2013
Contractor
Konica
83
Copy charge
Fuji
79
Copy charge
Lexmark
Total
Cost Previous
Contracts
Saving $
Saving %
$434,870.58
$626,188.00
$191,317.42
30.60%
$61,184.50
$100,798.19
$39,613.69
39.30%
$275,503.20
$515,898.00
$240,394.80
46.60%
$29,736.77
$48,909.16
$19,172.39
39.20%
$6,709.50
$10,300.00
$3,590.50
34.90%
$808,004.55
$1,302,093.35
$494,088.80
37.90%
# Machines Purchase Cost
7
Note: As the University pricing for or previous contract has now expired, these savings are calculated
against the current non-MOMs government pricing with the applicable discounts from our previous
contracts applied. This methodology enables comparisons against newly released models and takes
market price shifts in to account.
18 September 2013
61
Major Office Machines (cont.)
• Compliance at ~98%
• Product range updates
 Specification comparative
• Whole-of-life cost comparative
• Automatic meter readings
• Invoicing – Fuji Xerox
• Non-mandated suppliers (Canon, Toshiba etc.)
 Managed Print Services
18 September 2013
62
Stationery and Office Supplies
Savings for Period February 2013 to August 2013
University Group OfficeMax Cost
Corp Express Price
Saving $
Saving %
ADMIN
$190,466.23
$355,874.78
$165,408.55
46.48%
CAP
$71,499.21
$146,144.59
$74,645.38
51.1%
CASS
$52,784.27
$119,413.97
$66,629.70
55.80%
CBE
$39,799.06
$83,950.24
$44,151.18
52.6%
CECS
$10,809.47
$25,995.66
$15,186.19
58.42%
CMBE
$95,341.10
$200,369.29
$105,028.19
52.4%
CoL
$25,559.24
$43,012.95
$17,453.71
40.58%
CPMS
$47,586.57
$120,421.72
$72,835.15
60.5%
University Total
$533,845.15
$1,095,183.20
$561,338.05
51.3%
• 15,185 transaction lines (3079 products)
• 1,295 not matched (880 products)
• DoFD add new products each month, enabling additional items to be added to the matching list
18 September 2013
63
Stationery and Office Supplies (cont.)
•
•
•
•
•
Compliance at ~99%
Furniture exemptions
University OfficeMax Administrators
GL codes – contact your Finance Team
OrderMax re-skin
18 September 2013
64
Budget Solutions – Non-staffing
•
•
•
•
F&S – Energy Savings (Shane West)
ITS – Workspace Project (Anne Kealley)
UPCO - Travel (Airfares & Accommodation)
UPCO - Pool Vehicle Rationalisation
•
•
•
•
ITS – Mobile & Fixed Line (TBA)
HR – Staff Recruitment Agencies (TBA)
HR - Temporary Staff Agencies (TBA)
UPCO / Marketing – Publications & Printing (TBA)
18 September 2013
65
Morning Tea
Recommence in 20 minutes
Travel & Expense Project Update
Maggie & Leo
Overview
•
•
•
•
•
•
•
•
Business process workflow
Travel request entry screen
Collaborative email function
Integration with Expenses module
Web services integration
Outcomes/Benefits
Project status update
Future enhancement
18 September 2013
68
Proposed Business Process
Step 2
Immediate Supervisor
Endorsement on Travel
Request
Step 1
Applicant
Initial Travel Request
·
·
·
Complete Travel
Information, Travel
Plan, Risk
Assessment, and
Travel Budget
Attach relevant
forms (OSP,FBT,
Advances)
Complete checklist
once returning
from travel (Travel
diary,
Reimbursement,
FBT)
18 September 2013
·
Endorse travel
request
·
·
Step 3
Travel Administrator
Validate Travel Request
·
Request for more
information from
the applicant
Validate for
correctness and
completeness of
travel request
·
Endorsement can
be done through
collaborative email
Amend or update
travel information
as required
·
Change and reroute to different
supervisor/
Approver for
endorsement/
approval
·
Request for more
information from
the applicant
Step 4
1st Approver
Domestic Travel Request
Approval
Step 5
2nd Approver
International Travel Request
Approval
·
Approve/reject
domestic travel
·
Approve/reject
International travel
·
Approval can be
done through
collaborative email
·
Approval can be
done through
collaborative email
69
Other Enhanced Functionalities
• Process per-diem and advances requests through OCR
workflow and pay through Accounts Payable
• Automatic email reminder for travellers upon returning
from their trip to complete travel diary or advance
acquittals if applicable
18 September 2013
70
Travel Request Entry
Travel Information
18 September 2013
71
Travel Request Entry
Travel Plan
18 September 2013
72
Travel Request Entry
Risk Assessment
18 September 2013
73
Travel Request Entry
Travel Budget
18 September 2013
74
Approval by Collaborative Email
•
•
Approval can be done through either collaborative email or via system log on.
Collaborative email has an at-a-glance (tab free) layout with approval/reject functional
buttons
18 September 2013
75
Update to Travel Expenses in PeopleSoft Financials
18 September 2013
76
System Integrations through Web Services
• PeopleSoft Financials
– GL validation (Fund Department Project)
– ANU Tree Structure
– Travel Administrators
• PeopleSoft HR/Campus Solutions
– Personal Data ( Relationship to ANU, College, Program Plan, Emergency
contact)
– Approval delegation
– Staff/Students supervisor
• LDAP
– Log on credentials
• DFAT- Smart Traveller
– Country Risk Level
18 September 2013
77
Reporting
• Travel & Expense Costing Report
Provides a full costing for travel events, and including reconciliations between
actual and budget for each travel events
• Traveller Location Report
The ability to track travellers by location for a given date range, and DFAT
categories.
• Other Reports to be determined
18 September 2013
78
Outcomes/Benefits
•
•
•
•
•
•
End to end process on a single platform
Duty of care reporting
Electronic enabled workflow process
Standardized efficient process across University
Executive reporting on travel costing
Elimination of paper based process on per-diem,
advances, and reimbursement
18 September 2013
79
Project Status Update
•
•
•
•
Testing commence in early September
Pilot move into CAP
Pilot review with CAP through weekly meetings
Concurrent developments by ITS
– In built Travel Diary and acquittals
– In built FBT calculator (pre and post travel) as compared to
current manual form attachment
– In built Per-diem calculator
– In built Risk Assessment and approval workflow
– Development environment is currently used for testing purpose
– Acceptance environment will be required for pilot phase.
18 September 2013
80
Future Enhancements
• Proxy Function
– Travel Administrator can create travel request on behalf of
others
• Advanced Integration with HR
– Flag/update Employee Leave record with absence type travel
when a travel request is raised and approved in BPM
– Flag/update assignment of delegations when the usual delegate
has absence type travel
• Copy Function
– Allow user to copy from a previously created travel request or
copying from a different person.
18 September 2013
81
Accounts Payable - Workflow
Trevor Langtry
AP Workflow – Some Tips
18 September 2013
83
Monitoring Workflow - Online
18 September 2013
84
Monitoring Workflow - Report
18 September 2013
85
Monitoring Workflow - Report
18 September 2013
86
Collaborative E-Mail
What is it:
• Allows a person to engage in the workflow process (i.e.
approve) via an email without logging into the system
• Sounds Good? But!
–
–
–
–
–
Has reduced functionality
Unable to add additional documentation
Unable to insert additional workflow steps
Limited field validations
Does not like the use of special characters in the description or
comments fields - @#$’%^&*! - Sometimes
18 September 2013
87
Collaborative E-Mail – Cont..
18 September 2013
88
Collaborative E-Mail – Cont..
Three Options on how to use Collab E-Mail
1. Via the body of the e-mail itself
– Limited support in terms of which e-mail
client software it will work on
•
•
Works OK on the iPad
Old version of Outlook – Office 360 requires new
versions of Oulook
18 September 2013
89
Collaborative E-Mail – Cont..
2. Right click on view in web browser message
–
–
–
Caters for special character
You get a number of annoying confirmation
messages
Only works on Outlook?
18 September 2013
90
Collaborative E-Mail – Cont..
3. Select attached ApprovalForm.html
– Simple to use and limited annoying messages
– Works with a large variety of e-mail clients
– Does not like special characters
18 September 2013
91
Collaborative E-Mail – Cont..
18 September 2013
92
Collaborative E-Mail – Cont..
Recommendation:
– Limit Collaborative E-mail to those staff that:
• Have a very limited number of transactions; and
• Do not regularly use the system for other purposes
– Can still get e-mail notification that allows you
to click on link that takes you straight into the
workflow transaction once a user id and
password is entered – Same as approving
online leave
18 September 2013
93
Batch Listing/Grouping of Outstanding
Transactions
18 September 2013
94
Navigation Confusing?
18 September 2013
95
Still too hard?
18 September 2013
96
18 September 2013
97
Need Help
• Call – Ext 54321and follow the prompts
• Email – fbs-bso@anu.edu.au
• Doco - http://fbs.anu.edu.au/training/tips-andtechiniques/accounts-payable-workflow
• Request Drop In Session – Call or Email BSO
• Fortnightly Open forum – bring your problem
and discuss with all.
18 September 2013
98
Questions?
18 September 2013
99
General Discussion
All Participants
Next Finance Forum
Wednesday 13 November 2013
10:00 am to 12:30 pm
Close!